National Fertilizer Company of Nigeria

From NigerianWiki
Jump to navigation Jump to search

The National Fertilizer Company of Nigeria also called NAFCON but now called Notore Chemical Industries was a state owned company which was later sold to a private firm, 0-Secul Nigeria Ltd for $152 million. It is the major fertilizer producing firm in Nigeria but because of its comatose production rate since 1999, it did little to dent the nation's need to import fertilizer or to assuage the perennial shortage of fertilizer in the country.

The firm

The company makes use of a gas supply pipeline from the Alakiri gas fields to fire its plants located at Onne along Okrika Creek. The plant produces urea, ammonia and NPK fertilizers with an installed capacity of 1.2m tons per annum. The urea plant has a capacity to produce 1500 metric tons per day, the ammonia plant has a capacity for a 1000 mt and the NPK and phosphate plant has a capacity to produce 1650 mt per day.

The plant is located near an ocean terminal port that serves as an export zone for its products.

History

The Idea of a fertilizer plant was raised in the mid 1970s preceding a feasibility survey for the project. NAFCON was formally established in 1981 during the Green Revolution period and at a time financing was sought for the project from Nigerian, Japanese and American banks. Originally, it started out as a joint venture between the Federal Government of Nigeria (70%) and Kellog of Houston (30%). However, the Nigerian National Petroleum Corporation acquired the shares held by Kellog in 1991. The company started production on July 23, 1987. The fertilizer plant was built at a cost close to $800m.

The prices of the firm's major product was usually under state control as subsidy on fertilizer was a major political issue in many agrarian states. But after subsidy was removed in the 1990s, the price of fertilizer skyrocketed and corrupt practices prevented efficient distribution of the product on time to farmers.

The company being partly a resource based industry as a result of the availability of natural gas in the area is also the leading industrial contributor of nitrogen pollution in the Port Harcourt area.


External links